LG is ‘working hard to make sure we have not only the most cost-e...
LG is “working hard to make sure we have not only the most cost-effective approach” to DTV converters under the new DTV transition law’s subsidy provisions (CD Feb 9 p9), but also “one that provides value to the consumer…
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
and the best reception performance possible,” Vp John Taylor told us. LG got the tap from MSTV and NAB, along with Thomson, to develop a prototype low-cost converter box. “This is not a high-end box by any means,” Taylor said. “It doesn’t output high definition. It doesn’t include a DVR. It doesn’t include a DVD. Just the basics.” LG believes the $50 box it’s designing for MSTV and NAB will qualify for the $40 voucher program, even if it includes a PSIP-based “simple” electronic program guide, because it’s “very cost-effective to implement,” Taylor said. “It’s a necessity in today’s multichannel digital world to have a simple navigation device. It’s not a full-blown Gemstar guide, nor does it need to be. When you look at the growing number of multicast channels, we think this is just an important component of the overall package. We call it a low-end, affordable approach.” LG hasn’t yet shown a final prototype to MSTV or NAB, but the company has met all the “development timelines” and plans to complete the project this year, Taylor said: “As Thomson has said, we believe our approach also will serve as a benchmark for the industry -- a reference design, if you will -- against which others can build to assure these set-top boxes provide the level of performance that will serve dealers but also give broadcasters the confidence that their signal is getting through.” Taylor said: “There are plenty of things in the box that aren’t mentioned in the legislation. It’s going to have the V-chip. It’s going to have closed captioning. It’s going to have all the basic things that you have to have with an ATSC receiver not only to be lawful, but to provide utility.” Asked if the 37.5 million $40 vouchers covered by the law’s $1.5 billion allocation will suffice for all households that need them, Taylor said no one knows for sure how many boxes will be needed. With the FCC’s requirement that all TVs shipped after March 1, 2007, must have ATSC tuning, Taylor said, “many of these analog TVs out there that might otherwise require an adapter are just going to be replaced, so the overall population of sets requiring these adapters will shrink by the time they're needed. That being said, there also will be, I think, many American consumers who will not take advantage of the subsidy program. And frankly there will be other products out there that will be well outside of the scope of the subsidy program. There will be those who want to spend not $50, but $100 or $200 for a more full-featured device that does other things.” The $40 voucher is “a good starting place, and I don’t want to sound negative at all about it,” Taylor said. “It’s a program that will help complete this transition in a smooth manner. We're excited that there is a definitive hard date -- that 2009 is something we can all work toward and make sure that consumers are not disenfranchised.”